Land Sec sells Bullring stake to Australian taxpayers

Published 21st Sep 2009

The Australian taxpayer is to become the joint-owner of Birmingham’s Bullring after Land Securities sold its stake in the shopping centre for £210 million.

The Future Fund, which invests on behalf of the Australian Government, will own a third of the Bullring alongside Hammerson and Henderson Global Investors. The price tag reflects a 6.85 per cent net yield.

Richard Akers, managing director of Land Securities retail, said: “The absence of operational control over the Bullring made it an unusual asset within Land Securities' portfolio, where we look to create value through successful development and active management of properties. The funds generated by the sale will increase the group's flexibility to exploit future opportunities.” Shares in Land Securities rose 3.5p to 689.5p.

Land Securities raised £755 million from investors in February, a move that Francis Salway, the chief executive, said would enable the company to take advantage of any acquisition opportunities.

The Bullring, which opened in 2003, generates a rental income of £45 million a year and is anchored by Debenhams and Selfridges.

Bruce Nutman, head of retail capital markets at CB Richard Ellis, said: "This sale is a strong indicator of investor confidence in the prime shopping centre investment market in the UK.”

Source: ' Times '

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